United States Personal Spending

Personal spending in the United States fell 0.5 percent from a month earlier in December 2018, following a downwardly revised 0.6 percent increase in November and compared to market expectations of a 0.2 percent drop. It was the largest decline in personal spending since September 2009. Considering 2018 full year, PCE increased 4.7 percent, faster than 4.3 percent in 2017. Personal Spending in the United States averaged 0.54 percent from 1959 until 2018, reaching an all time high of 2.80 percent in October of 2001 and a record low of -2.10 percent in January of 1987.

Personal Spending in the United States is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Personal Spending in the United States to stand at 0.50 in 12 months time. In the long-term, the United States Personal Spending is projected to trend around 0.50 percent in 2020, according to our econometric models.

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US Personal Spending Posts Biggest Fall in Over 9 Years

Personal spending in the United States fell 0.5 percent from a month earlier in December 2018, following a downwardly revised 0.6 percent increase in November and compared to market expectations of a 0.2 percent drop. It was the largest decline in personal spending since September 2009.

The BEA latest report, which has been postponed for almost a month due to the partial government shutdown, includes personal income and outlays for December 2018, as well as personal income for January 2019. Estimates for personal outlays and the personal saving rate for January are not available, according to the source.

Personal Income and Outlays, December 2018

Personal consumption expenditures (PCE) fell by $76.6 billion, or 0.5 percent, in December, following a revised $79.7 billion advance, or 0.6 percent, in November. The decline in consumer spending, which accounts for more than two-thirds of US GDP, was due to a decrease in consumption of durable (-1.9 percent vs 2.1 percent in November) and nondurable goods (-1.9 percent vs 0.4 percent). Meanwhile, spending for services edged up 0.1 percent, easing from a 0.4 percent gain in the previous month.

Real PCE decreased $77.9 billion, or 0.6 percent, which reflected a decrease of $67.2 billion in spending for goods and a $18.2 billion decrease in spending for services. Within goods, recreational goods and vehicles was the leading contributor to the decrease. Within services, the largest contributor to the decrease was spending for household electricity and gas.

Personal income increased $179.0 billion, or 1 percent, in December, due to increases in personal dividend income, compensation of employees, and farm proprietors’ income. Personal dividend income increased $83.4 billion, primarily reflecting a one-time special dividend payment by VMware Incorporated. Farm proprietors’ income increased $29.2 billion, which included subsidy payments associated with the Department of Agriculture’s Market Facilitation Program.

Personal outlays decreased $71.3 billion in December. Personal saving rose to $1.21 trillion in December and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.6 percent.

Personal income dropped $23.8 billion, 0.1 percent, in January. It was the first month of decline in personal income since November 2015 due to decreases in personal dividend income, farm proprietors’ income, and personal interest income that were partially offset by increases in social security benefit payments (related to cost of living adjustments), and other government social benefits to persons, which includes the Child Tax Credit and the Affordable Care Act refundable tax credit.

US Personal Spending Rises More than Expected
Personal spending in the United States increased 0.4 percent from a month earlier in November 2018, following an upwardly revised 0.8 percent gain in October and above market expectations of a 0.3 percent rise. Published on 2018-12-21

US Personal Spending Rises the Most in 7 Months
Personal spending in the United States rose 0.6 percent from a month earlier in October 2018, following a downwardly revised 0.2 percent advance in September and beating market expectations of a 0.4 percent gain. It was the largest increase in personal spending since March.Published on 2018-11-29

US Personal Spending Matches Forecasts
Personal spending in the United States rose 0.4 percent from a month earlier in September of 2018, following an upwardly revised 0.5 percent rise in August. Figures matched market expectations, mainly boosted by spending in motor vehicles and health care.Published on 2018-10-29

US Personal Spending Rises the Least in 6 Months
Personal spending in the United States rose 0.3 percent from a month earlier in August 2018, following a 0.4 percent advance in July and matching market expectations. It was the smallest increase in personal spending since February.Published on 2018-09-28

United States Personal Spending

Consumer spending accounts for about 70 percent of economic activity in the United States and is a key driver of growth. This page provides the latest reported value for - United States Personal Spending - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States Personal Spending - actual data, historical chart and calendar of releases - was last updated on March of 2019.